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Home My WebLink AboutApproving Industrial Development Revenue Bonds - R & C RealtyORDINANCE No. 6887 -81 Passed by the Common Council of the City of South Bend, February 9. tq 81 /1 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Approved and signed by Clerk of Common Council IRENE K. GAMMON Clerk BILL NO. ORDINANCE NO. 4 AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, TRUST INDENTURE AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING RESOLUTION NO. 32 -80 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE R & C REALTY, AN INDIANA PARTNERSHIP, PROJECT STATEMENT OF PURPOSE OF INTENT: The Common Council of the City of South Bend, Indiana heretofore has created the South Bend Economic Development Commission, hereinafter referred to as "Commission ", pursuant to the provisions of the Public Law No. 182 of the Acts of the General Assembly of Indiana for 1973, as such may be amended from time to time, including but not limited to IC 18- 6 -4.5 -1 through IC 18- 6- 4.5 -30, hereinafter referred to as the "Act "; and The City of South Bend, Indiana, by and through the South Bend Economic Development Commission ( "Commission ") has previously issued its Economic Development Revenue Bonds in the principal amount of Five Hundred Thousand Dollars ($500,000.00) on the 4th day of January, 1980, (R & C Realty Project) to finance the acquisition of real estate and construction of a commercial building located on the northwest corner of Lincolnway East and Sample Streets within the City of South Bend, Indiana, which constituted economic development facilities as defined by Indiana law. R & C Realty, an Indiana partnership, comprised of Donald L. Rohan and David L. Collier, has filed an application with the South Bend Economic Development Commis- sion seeking the issuance of City of South Bend Economic Development Revenue Bonds in the principal amount of Two Hundred Fifty Thousand Dollars ($250,000.00) in order to complete and expand the facilities described herein. The Commission has prepared and placed on file a report containing the subject matter as specified in IC 18- 6- 4.5 -16 and has forwarded copies thereof to the Chairman of the Area Plan Commission of St. Joseph County, Indiana, and to the Superintendent of the South Bend Community School Corporation, being the area in which the proposed facilities will be located, and has timely received favorable reports from each of them, and the Commission held a public hearing on the proposed financing of such economic development facil- ities in accordance with the Act after giving the required notice as provided in the Act, and adopted a resolution finding that such proposed financing complies with the purposes and provisions of all applicable Indiana statutes governing the issuance of Industrial Development Revenue Bonds, including but not limited to the Act and approved the form and terms of the Loan Agreement, Trust Indenture and Mortgage and Industrial Development Revenue Bonds, and further approved this form of ordinance authorizing the execution thereof, and that such economic development facilities will not have an adverse competitive effect on similar facilties already constructed and operating in the City of South Bend, Indiana. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, that: Section 1. The form and terms of the Loan Agreement, Mortgage and Trust Indenture and Industrial Development Revenue Bonds pertaining to the issuance of the Industrial Development Revenue Bonds in accordance with the terms of the Trust Indenture, Mortgage and Loan Agreement pertaining to the application of R & C Realty, an Indiana partnership, for the issuance of Bonds to complete the facilities, are hereby approved and adopted. Section 2. Said forms of Loan Agreement, Trust Indenture, Mortgage and Industrial Development Revenue Bonds which are on file with the Commission are hereby incorporated by reference into this Ordinance, and said forms shall be inserted into the minutes of the Common Council of the City of South Bend, Indiana, and shall be kept on file by the City Clerk of South Bend, Indiana. Section 3. The Loan Agreement, Trust Indenture, Mortgage and Industrial Development Revenue Bonds shall be executed on behalf of the City of South Bend, Indiana by the Mayor and the City Clerk. Section 4. Said Industrial Development Revenue Bonds, payable solely and only from the revenue derived from such R & C Realty Project pursuant to the aforementioned Trust Indenture and -2- Loan Agreement shall not be in any respect a general obligation of the City, nor shall the bonds be paid in any manner from funds raised by taxation, and may be executed in the principal amount of Two Hundred Fifty Thousand Dollars ($250,000.00), repayable with interest thereon at seventy percent (70 %) of the local prime rate charged by Pacesetter Bank & Trust - Southwest, Niles, Michigan, such rate of interest to be calculated on the first business day of each calendar quarter and the interest charged shall not exceed twelve and one -half percent (12- 1/2%), payable in monthly installments over a period of ten (10) years after the date of such bonds, and that such Trust Indenture, Mortgage and Loan Agreement and such Industrial Development Revenue Bonds shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and Clerk and sealed with the corporate seal of such City. Section 5. Resolution No. 32 -80 of the South Bend Economic Development Commission passed on January 9, 1981, is hereby approved and the Common Council of the City of South Bend hereby finds that the proposed financing for the issuance of the economic development revenue bonds would be of benefit to the health and welfare of the City of South Bend and that it complies with the purposes and pro- visions of IC 18- 6 -4.5, as amended and supplanted. Section 6. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. '$I READING / - � 6 - Y/ PUBLIC HEARING a- 57_- q/ 2nd READING - Cl-el NOT APPROVED REFERRED PASSED -3- FILED IdI CLE7g'S OFFICE P,N2' -1.981 Irene Gammon CITY CLERK, SOUTH BERD, WD. VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: Revenue Bond Application R & C Realty Dear Councilmen: AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McMICHAEL The South Bend Development Commission has received an application for a Revenue Bond issue in the amount of Two Hundred Thousand ($250,000.00) Dollars for and on behalf of R & C Realty, an Indiana partnership, to complete their commercial and industrial heating, air conditioning and ventilating facility located at the northeast corner of Lincoln Way East and Sample Streets, South Bend, Indiana. This issue is a supplemental issue to complete the project previously started with an Economic Develop- ment Commission bond. The new facility in addition to retaining the present employment will create three additional jobs with an additional annual pay- roll Of Sixty Thousand ($60,000.00) Dollars when completed and in operation. KPF /k Kexiri tYi W Fedder Atto ney for SOUT BEND FCONOMIC DEV ODMENT COMMISSION FILED 111 CLEPITS OFFICE iTIA 2 1981 Irene Gammon CITY CLERK, SOUTH BEND,IND- ATTORNEYS 8 COUNSELORS AT LAW WILLIAM E. VOOR LLOYD M.ALLEN 300 FIRST BANK BUILDING KENNETH P. FEDDER SOUTH BEND, INDIANA 46601 GEORGE E. HERENDEEN ANTHONY D. KOWALS January 21, 1981 Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: Revenue Bond Application R & C Realty Dear Councilmen: AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McMICHAEL The South Bend Development Commission has received an application for a Revenue Bond issue in the amount of Two Hundred Thousand ($250,000.00) Dollars for and on behalf of R & C Realty, an Indiana partnership, to complete their commercial and industrial heating, air conditioning and ventilating facility located at the northeast corner of Lincoln Way East and Sample Streets, South Bend, Indiana. This issue is a supplemental issue to complete the project previously started with an Economic Develop- ment Commission bond. The new facility in addition to retaining the present employment will create three additional jobs with an additional annual pay- roll Of Sixty Thousand ($60,000.00) Dollars when completed and in operation. KPF /k Kexiri tYi W Fedder Atto ney for SOUT BEND FCONOMIC DEV ODMENT COMMISSION FILED 111 CLEPITS OFFICE iTIA 2 1981 Irene Gammon CITY CLERK, SOUTH BEND,IND-